Bonds
European Commission accuses eight banks of bond market collusion
EC can fine banks 10% of their turnover if it finds “sufficient evidence” of market rigging
Sri Lankan lawyers allege wrongdoing by senior central bank officials
Court says senior deputy governor must appear before it on February 25
Growth keeping global debt-to-GDP just below all-time high – IIF
Latest monitoring report puts debt at three times global GDP, with some countries especially vulnerable
Central Bank of Kuwait overhauls core banking system
System provided by Tata automates key central bank operations
Draghi warns of downside risks as ECB ends net asset purchases
ECB will continue buying sovereign bonds with yields below deposit rate
ECB secondary bond purchases are legal, European Court of Justice says
European Union’s highest court rejects German activists’ claim that PSPP breached constitution
ECB and EBA action may have limited CoCo contagion – BoI paper
Deutsche Bank CoCos spread volatility throughout European banks in 2016, researchers find
ECB unveils richer eurozone forecasting model
“NAWM II” models financial sector’s role in originating and propagating economic shocks
IMF programmes do not harm governments’ financing ability – ECB paper
Governments use IMF as an excuse when “struggling with transparency”, authors argue
BoE paper proposes fix for flawed rate expectation estimates
Model augmented with overnight indexed swap rates performs better, author says
NY Fed economist explores election night volatility
Treasuries suffered dramatic moves as Donald Trump was elected in 2016
Draghi confident Italy and European Commission will reach deal
ECB president says momentum is slowing but points to higher negotiated wage growth
ECB’s normalisation could spell trouble for Italy’s bond market
Rome’s budget row with Brussels escalates just as QE is about to halt
ECB paper presents new sovereign stress model
New method builds on earlier CISS model to measure systemic stress in eurozone
Fed’s QE programme changed US corporate financing – BdF paper
Conventional monetary policy and QE have very different transmission mechanisms – researchers
Sri Lankan central bank to hold forensic audit of corruption allegations
CBSL announces wide-ranging policy changes after “bond scam” allegations
Ukrainian central bank to auction distressed banks’ assets
NBU also announces upgrade to sovereign bond-selling infrastructure
Solid US economy contributes to higher 10-year Treasury yields
Inverted yield curve less likely as long-term growth and inflation expectations rise
Reserve management practices are splintering
Traditional approaches to reserves management are breaking down, writes Jennifer Johnson-Calari
European banking and capital markets union would foster growth – Draghi
More integrated financial markets can contribute to higher productivity growth, says ECB president
Demetriades on political pressures on central banks and their governors
Former governor of the Central Bank of Cyprus speaks about the Cypriot banking crisis, the need for EU-wide AML oversight, independence and his fears for stability of the monetary union
Argentina to continue reducing stock of short-term debt
Lebac’s expansion thought to contribute to inflation
Flatter US yield curve may not herald a new crisis – San Francisco Fed
The curve inversion has not materialised, while low long-term yields may be related to quantitative easing
ECB asks for changes to EU’s covered bond proposals
Suggested new regime could lead to significant national differences within EU, ECB says